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Fed Chairman Ben S. Bernanke is signaling that further Federal Reserve stimulus is unlikely unless the economy unexpectedly deteriorates

Thursday, April 26, 2012 4:22 AM GMT

Good Morning ,

- Fed Chairman Ben S. Bernanke is signaling that further Federal Reserve
stimulus is unlikely unless the economy unexpectedly deteriorates. EMG- and
commodity currencies continued to well overnight and EURUSD failed once more
to overcome the 1.3240-50 hurdle. CAD rallied to the strongest level vs. the
Dollar (0.9822) since September and BOC Carney expressed some concerns on
the CAD strength

- Stocks: Nikkei -0.28 %, Hang Seng +0.16 %, Shanghai Composite -0.33 %,
Dow Jones +0.69 %, S+P500 +1.36 %

- The Federal Open Market Committee preserved the "late 2014" rate guidance
introduced in January and offered no hints of further policy accommodation
once Operation Twist ends on June 30. This was in line with our expectations.

- While the FOMC said growth is likely to "remain moderate over coming
quarters," Fed officials increased their estimates for 2012. The economy will
expand at a 2.4 percent to 2.9 percent pace this year, up from a January
projection of 2.2 percent to 2.7 percent, central bankers said. At the same
time, Fed officials lowered their growth estimates for next year and 2014.

- Japanese National Strategy Minister Motohisa Furukawa said manufacturers are
struggling to maintain domestic production because of the yen's strength and
called on the central bank to end deflation. "A strong yen makes it difficult
for companies throughout Japan," Furukawa said. "I think a lot of
manufacturers are thinking that this currency rate makes it pretty hard to
continue producing goods in Japan."

- China's yuan rose on Thursday after the People's Bank of China set the
midpoint at a record high of 6.2829 prior to the upcoming annual China-U.S.
Strategic Economic Dialogue (SED).

- Moody's Investors Service says the outlook for China's Aa3 foreign and local
currency bond ratings is positive, supported by favorable medium-term
economic growth prospects, as well as by strong government debt dynamics.
However, tight control over local government finances and a new wave of
reform, especially in the financial system, is necessary for China to
sustain rapid and stable economic growth throughout the rest of this decade.

- Bank of Canada Governor Mark Carney said the strength of his country's dollar
is slowing economic growth and is one of the variables he considers when
setting interest rates.

- New Zealand's central bank left interest rates at a record low, citing benign
inflation, and signaled that the rising currency may delay an increase in
borrowing costs. "The New Zealand dollar has stayed elevated despite recent
falls in commodity prices," Governor Alan Bollard said. "For now, it is
appropriate for the official cash rate to remain at 2.5 percent. Should the
exchange rate remain strong without anything else changing, the bank would
need to reassess the outlook for monetary policy settings."

- U.K. consumer confidence rose to a nine-month high in March, according to
Nationwide Building Society, which said the improvement may not be sustained
as the economy shrinks. An index of sentiment climbed to 53, the highest since
June, from 44 in February. A gauge of consumers' expectations for the economy
jumped 13 points to 73.

- 1430 US Chicago Fed Nat Activity Index Mar
- 1430 US Initial Claims
- 1600 US Pending Home Sales Mar
- 1700 US Kansas City Fed Manf Index
- var. Germany Laender CPIS Apr
- 1000 Italy Business Confidence Apr
- 1000 Italy Business Climate Indicator Aor
- 1100 Eurozone Consumer Confidence Apr
- 1100 Eurozone Economic Confidence Apr
- 1100 Eurozone Industrial Confidence Apr
- 1100 Eurozone Services Confidence Apr
- 1400 Germany CPI Apr
- 0900 ECB Draghi, EU Barnier
- 1030 UK BBA Loans for House Purchase Mar
- 1200 UK CBI Reported Sales Apr
- 0915 Sweden Consumer Confidence Apr
- 0915 Sweden Manufacturing Apr
- 0915 Sweden Economic Tendency Survey Apr
- 0930 Sweden PPI Mar

  (CET)

Have a nice day !

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